Uncover the mysterious rise phenomenon in the middle and tail of the bull market!
When the bull market reached its peak, the price soared to an astonishing level, but where did the money behind it come from? The answer is actually in our daily economic activities. When the bull market entered the middle and late stages, most investors were reluctant to sell their assets because they were worried that once they sold, they would miss the opportunity to further increase the value of their assets. This general psychological expectation led to a significant reduction in the supply in the market, forming the so-called "volumeless rise" phenomenon.
The starting point of a bull market often requires a lot of capital to push forward, because the transition from a bear market to a bull market usually requires low market trading volume, and a large amount of capital inflow is needed to break the deadlock. However, in the middle and tail of the bull market, the situation reversed. As investors generally reluctant to sell, the supply in the market decreased, resulting in a sharp rise in prices even with only a small amount of capital inflow.
So, who did those who sold assets at the peak of the bull market make money from?
In fact, the profits they earn come from two aspects: one is the latecomers who take over at high prices and are willing to pay a higher price to buy these assets; the other is those investors who did not sell in time and were trapped, and the value of their assets shrank significantly after the bubble burst. Therefore, these sellers only made short-term profits in the market bubble.
At the same time, we also see the reality that most people work for a few rich people. Ordinary people work hard and deposit their hard-earned money into banks. Banks lend these funds to rich people, who then use these funds to open companies, expand their businesses, and eventually hire ordinary people to work for them. In this way, the efforts and time of ordinary people are transformed into profits for the rich.
However, we must recognize the fact that the money you earn often only circulates within your ability. Unless you have extraordinary luck, the money earned by luck alone will often disappear in the end due to lack of sufficient ability and experience. Therefore, it is crucial to improve your wealth cognition.
One of the fairest things in the world is that when your wealth exceeds your understanding and control ability, countless ways will bring you back to square one.Only when your cognition matches your wealth can you truly maintain and increase your wealth. To become rich, you need to learn how rich people think, because they see the world very differently from you. When new things appear, rich people see opportunities and think about how to make more profits from them; ordinary people may miss opportunities because of their fear of risks.
In the bull market, you need a high-quality qzi. If you don’t know how to operate and are still confused, everyone is welcome to join! Please like, follow, forward, and leave a message!
